High Cap rates in Multi-family at this time?

[Ayat Suleiman]

I'm currently working on a project where one of the investors is looking for a 9% cap rate on a few multi-family properties (b and c class).  To me that seems a little high considering the cap rate isn't normally that high even when we aren't in a pandemic. Am I just not looking hard enough or does this seem a little out of reach?

[Lee Ripma]

@Ayat Suleiman

Sometimes an investors desired cap rate or desired return shows the fact that they don’t know the market or anything about RE investing. If someone tells me they want anything over a 5 cap on actuals in LA I won’t give them a second though, they have no idea what they are talking about, and are a waste of my time. This may be the case with this investor...